HHS spells contraception coverage rule options

3/16/12 6:02 PM EDT

The Department of Health and Human Services announced that they're considering three options to implement President Obama's requirement that women employed by religious instituions get free, no-copay birth control.

- Require the companies that self-insured plans hire to manage their employee benefits, called third-party administrators, to cover the cost of these benefits out of revenues not connected with the religiously affiliated employer.

- Cover the cost of the benefit by having the new reinsurance program established by the health care reform law pay rebates to third-party administrators.

- Have a separate insurance company provide the benefit to these employees.

The proposal also suggests giving the exemption to religious organizations that cover some, but not all, FDA-approved contraceptives.

HHS also issued a final rule on Friday regulating student health plans offered by universities. They spell out that religious universities will largely have to follow the same rules for providing contraceptive coverage for their students that they will have to for their employees. But self-funded student plans will be exempt, because HHS does not have the authority to regulate them under current law.